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These 2-cent shares could rise to $ 11, analysts say
At its January FOMC meeting, the Federal Reserve kept interest rates steady – they are close to rock bottom now and, to no one’s surprise, the Fed is keeping them there. Fed Chairman Jerome Powell may have fueled some market pessimism when he spoke after the meeting, and pointed to unemployment, which has been rising in recent months. For market watchers looking for support, there is comfort in the Fed’s monetary policy. The central bank is committed to buying $ 80 billion a month in Treasury bills and has put an increase in interest rates, probably until 2023. At least least one of the top strategists sees the current market environment in terms of opportunity. JPMorgan strategist, Marko Kolanovic, takes an optimistic stance, writing: “We expect the global COVID pandemic to subside rapidly in the coming weeks. In fact, the rate of decline in new cases in the past 2 weeks is the highest ever recorded in the US and globally … Central banks must remain accommodated, given high levels of unemployment and more than a decade of low inflation below their goals … Short – term turbulences, like this week ‘s, are opportunities to switch from securities to stocks. ”Taking this perspective into account, we intend to find exciting opportunities that will not break the bank, namely low-cost stocks. These shares, priced at $ 5 or less, offer investors one of the greatest growth potential available on the market. There is also risk here, as ‘pennies’ tend to cost little for a reason, so due diligence is essential. Using the TipRanks database, we identified two penny stocks that received a “strong buy” consensus rating from the analyst community. Not to mention that each one offers enormous potential for appreciation, as some analysts consider it to be as high as $ 11. . Oncology is an important field for cutting-edge biofarms. Cancer is often deadly and often resistant to current treatments – and these treatments themselves will often cause serious side effects in patients. BioLineRx has an active line of drug candidates, but the most advanced is motixafortide, a synthetic peptide that completed the patient’s enrollment in a Phase 3 study on stem cell mobilization for autologous bone marrow transplantation. The drug is being studied for its effectiveness in promoting bone marrow collection before cancer treatment. The results of a pre-planned interim analysis showed ‘statistically significant evidence favoring treatment with motixafortida in the primary endpoint’, evidence that was so significant that enrollment was completed early, with 122 patients instead of 177. Mobilization of stem cells , using motixafortida, is seen as the company’s most efficient way to register the new drug for regulatory approval. Based on the potential of motixafortide and the $ 2.40 price of the stock, some analysts think that now is the time to pull the trigger. Covering the BLRX for Oppenheimer, 5-star analyst Mark Breidenbach noted: “Our thesis remains centered on motixafortide in stem cell mobilization and we see a disconnect between the company’s market capitalization and the motixafortide market opportunity as a cell mobilizer -trunk. The main secondary outcomes of GENESIS are expected in mid-2021, and we see few risks directed to this data … ”The analyst added:“ We believe that the results of the GENESIS Phase 3 study can encourage most transplant doctors to choose BL-8040 instead of Mozobil to combine with G-CSF if the drug is approved. The positive side of our thesis includes BL-8040 for use in other auto-HSCTs, allo-HSCTs, AML and solid tumors. The company has a deep catalyst-rich oncology line that has attracted collaborations with Novartis, Merck and Genentech. ”In light of all of the above, Breidenbach evaluates the BLRX as a purchase, and its $ 11 target price suggests a whopping 358% rise for next year. (To view Breidenbach’s history, click here) The rest of the street seems to echo Breidenbach’s optimistic sentiment. As you have accumulated 3 purchases and no waiting or selling, the consensus is unanimous: BLRX is a strong purchase. Adding to the good news, the upside potential reaches ~ 428% based on the $ 12.67 average price target. (See the analysis of BLRX shares in TipRanks) Kindred Biosciences (KIN) Although most biotechnology companies focus on medicines for humans, we are not the only market. Kindred Biosciences is a biopharmaceutical company in the veterinary market, developing biological medicines to improve the lives of our pets and workers. The company describes its mission as'[bringing] to pets the same types of safe and effective remedies that members of the human family like. ‘Parvovirus (CPV) is a highly infectious and lethal viral disease that affects dogs. Although vaccines are available, untreated cases can have more than 91% mortality. Kindred’s flagship drug, KIND-030, is being developed as a treatment for this disease. Currently, the candidate drug is following two paths in the development process – one for the treatment of established infections and the other as a preventive prophylactic treatment for CPV. The prophylactic study showed positive results, with all treated dogs avoiding infection, while all dogs in the placebo group developed parvovirus disease. KIND-030 also showed a mortality benefit when administered as a treatment for infections. The candidate drug is in the main stage of development of the study, the last one before possible approval. Last month, Kindred announced that it had signed an agreement with Elanco Animal Health – a major manufacturer of veterinary medicines – for the production of KIND-030. Cantor analyst Brandon Folkes sees a lot of potential at Kindred, especially in the company’s deal with Elanco. “A partnership with a leading animal health company, in this case Elanco, was exactly what the company needed, in our view. In our opinion, this validates KIN’s new strategic approach, as a drug developer while looking for larger business partners. We believe that today’s business should reinforce to investors that there is still significant value in Kindred’s pipeline, which can be carried out in the next 12 to 18 months ”, said Folkes. Kindred is also conducting studies of Tirnovetmab, or KIND-016, an antibody that targets IL31, in the treatment of atopic dermatitis in dogs. The study of the fundamental effectiveness of this medicine began in the last quarter of 2020. There is a potentially huge market for a successful treatment of dermatitis in canines; in the last six years, there has been a 47% increase in visits to the veterinarian for dogs with severe itchy skin, and the market is estimated at $ 900 million or more. “Although 2020 was a difficult year for KIN’s actions, the company continues to have several shots on target from its diversified pipeline that could reward investors at current levels. With several readings in 2021 and the renewed exclusive focus on the development of its pipeline, we hope that 2021 will be a remarkable year for KIN, if it is able to fulfill the promise of its pipeline and, in particular, the atopic dermatitis portfolio ”, said the analyst. summed up. To this end, Folkes gives the KIN a target price of $ 11, which implies a potential increase of 139% for 2021 and an overweight rating (ie purchase). (To see Folkes’ history, click here) Kindred is another company with a unanimous consensus of Strong Buy analysts, based on 5 recent Buy reviews. The stock has an average price target of $ 10.25, which suggests room for ~ 124% growth from the current trading price of $ 4.59. (See TipRanks KIN stock analysis) To find good ideas for low-cost stock trading with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.